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Hexion Specialty Chemicals, Inc. Announces that it is Calling for Redemption all of its Outstanding Shares of Series A Preferred Stock (CUSIP: 428300-20-6)

May 5, 2006 at 12:02 PM EDT

COLUMBUS, Ohio--(BUSINESS WIRE)--May 5, 2006--Hexion Specialty Chemicals, Inc. ("Hexion" or the
"Company") announced today that it has called for redemption all of
its outstanding shares of Series A Preferred Stock
(CUSIP: 428300-20-6)(the "Preferred Stock"). Dividends on the shares
of the Preferred Stock will cease to accrue on the redemption date,
which is May 12, 2006.

The cash redemption price for the Preferred Stock is $25.25 per share, which
represents 101% of the liquidation preference, plus an amount in cash equal
to all accumulated and unpaid dividends, up to, but not including, the redemption
date. As of May 4, 2006, 14,781,959 shares of our Preferred Stock were outstanding.

The formal redemption notices required by the Certificate of
Incorporation of Hexion have been sent to holders of the shares of
Preferred Stock. The redemption of the shares of Preferred Stock and
the payment of the redemption price will be in accordance with the
terms specified in the redemption notice and the redemption procedures
of The Depository Trust Company, 55 Water Street 50th Floor, New York,
NY 10041-0099.

Forward Looking Statements

Certain statements in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended and Section 21E of the Securities Exchange Act of
1934, as amended. Forward looking statements may be identified by the
words "believe," "expect," "anticipate," "project," "plan,"
"estimate," "will" or "intend" and similar expressions. The
forward-looking statements contained herein reflect our current views
with respect to future events and are based on our currently available
financial, economic and competitive data and on current business
plans. Actual results could vary materially depending on risks and
uncertainties that may affect the Company's operations, markets,
services, prices and other factors as discussed in our SEC filings.
Important factors that could cause actual results to differ materially
from those in the forward-looking statements include, but are not
limited to: economic factors such as an interruption in the supply of
or increased pricing of raw materials due to natural disasters,
competitive factors such as pricing actions by our competitors that
could affect our operating margins, and regulatory factors such as
changes in governmental regulations involving our products that lead
to environmental and legal matters as described in our SEC filings.
Additional factors that could cause actual results to differ
materially from those in the forward-looking statements are discussed
in our Form 10-K for the period ended December 31, 2005 under the
caption "Forward-Looking and Cautionary Statements" under Item 7:
Management's Discussion and Analysis of Financial Condition and
Results of Operations. We undertake no obligation to publicly update
or review any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as otherwise
required by law.

About Hexion Specialty Chemicals

Based in Columbus, Ohio, Hexion Specialty Chemicals combines the
former Borden Chemical, Bakelite, Resolution Performance Products and
Resolution Specialty Materials companies into the global leader in
thermoset resins. Hexion serves the global wood and industrial markets
through a broad range of thermoset technologies, specialty products
and technical support for customers in a diverse range of applications
and industries. Hexion Specialty Chemicals is owned by an affiliate of
Apollo Management, L.P. Additional information is available at
www.hexion.com.